November 16, 2015
Dear Reader:
At the Clinton Foundation, we work around the world – helping farmers lift themselves out of
poverty, assisting island nations with renewable energy projects, empowering girls and women, and
promoting healthier communities and nutritional food options at schools here in the United States.
In 2014, the continued strong support for the Foundation enabled us to continue to scale and
expand our work. We are an operating foundation – our staff works on the ground across the globe
to implement our programs directly, and we convene partners to make commitments that have an
even broader reach. We rely on the support of individuals, businesses, and governments that provide
contributions and grants to sustain this work.
In 2014, financial support increased, while expenses grew at a slower rate, consistent with the
expansion of our work around the world. And we continued to grow our endowment to make our
work sustainable in the future.
The support of our contributors and grantors made it possible for our initiatives to make great
progress in 2014. For example:
The Clinton Global Initiative, which convenes leaders from business, government, and civil
society, announced 319 new Commitments to Action by CGI members that are expected to
improve the lives of more than 4.9 million people;
The Clinton Development Initiative’s Anchor Farm project in Tanzania and Malawi worked
with more than 36,000 smallholder farmers, providing climate-smart agronomic training and
access to markets and services for maize, soya, and sunflower production;
No Ceilings: the Full Participation Project, in collaboration with the Center on Universal
Education at the Brookings Institution, announced a $600 million partnership bringing
together 30 cross-sector partners to help 14 million girls receive a safe and quality secondary
education over the next five years;
The Clinton Giustra Enterprise Partnership (CGEP), which creates social enterprises that
help people lift themselves out of poverty, expanded its work in 2014. CGEP created a
peanut supply chain enterprise in Haiti and a distribution enterprise in Peru. CGEP also
began working with more than 500 farmers across Latin America, registered more than 1,500
students in its training center enterprise in Colombia, and recruited and trained more than
200 female entrepreneurs in Peru and Haiti;
The Clinton Foundation continued its work on the ground in Haiti. In 2014, the Haiti team
supported the growth of 10 entrepreneurial businesses across Haiti and provided agricultural
training and inputs to over 300 Haitian coffee farmers;
Too Small to Fail partnered with Univision, the leading media company serving Hispanic
America, to launch “Pequeños y Valiosos” (“Young and Valuable”), a multiplatform
campaign to reach Hispanic families;
The Clinton Health Matters Initiative, which aims to improve the health and wellness in
communities across the United States, generated more than 45 formalized strategic
partnerships with national and local entities. These partnerships collectively reflect
investments and projects that will reach more than 50 million people across the country;
The Clinton Climate Initiative, through its building retrofit and energy efficiency programs,
helped reduce greenhouse gas emissions in the US by 33,500 tons through 2014;
The Clinton Presidential Center marked the welcoming of more than 3.3 million visitors
from around the world since opening in 2004, and the Choctaw Building at the Center was
recognized as the oldest LEED-certified building in Arkansas, and among the oldest of all
LEED-certified buildings in the country.
This is just a sample of the life-changing work that we do around the world.
Our operations are lean and sustainable – to maximize our contributors’ and grantors’ support.
Consistent with previous years, in 2014 the vast majority of the Foundation’s spending went to
fulfilling our programmatic work – approximately 80 percent of all spending.
We are committed to transparency and accountability, and as such have posted not only our 990 tax
documents but also the consolidated, audited financial statements of the Foundation. For reporting
purposes, the latter reflects the work of the Clinton Health Access Initiative, a separate 501(c)3
which became independent in 2010. We will continue to voluntarily post quarterly disclosures of all
our contributors and grantors, well above and beyond what is required of charities.
The work we are doing has been built to continue for many years to come, and to be scaled and
expanded where it is most effective and having the most meaningful impact. I am incredibly proud
of our work around the world and the tireless efforts of the Clinton Foundation’s staff, and excited
for the difference we will make in the years to come.
Sincerely,
Donna E. Shalala
Bill, Hillary & Chelsea Clinton
Foundation
Consolidated Financial Statements
December 31, 2014 and 2013
Bill, Hillary & Chelsea Clinton Foundation
Index
December 31, 2014 and 2013
Page(s) Independent Auditor’s Report ... 1 Consolidated Financial Statements
Statements of Financial Position ... 2 Statements of Activities ... 3 Statements of Cash Flows ... 4 Notes to Financial Statements ... 5–22
PricewaterhouseCoopers LLP, 900 South Shackleford Road, Suite 600, Little Rock, Arkansas 72211 T: 214-999-1400, F:214-754-7991, www.pwc.com
Independent Auditor's Report Tothe Board of Directors of the Bill, Hillary, and Chelsea Clinton Foundation:
We have audited the accompanying consolidated financial statements of the Bill, Hillary & Chelsea Clinton Foundation (the “Foundation”), which comprise the consolidated statements of financial position as of December 31, 2014, and December 31, 2013, and the related consolidated statements of activities and of cash flows for the years then ended.
Management's Responsibility for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidatedfinancial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidatedfinancial statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on the consolidated financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the consolidatedfinancial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the
Foundation's preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Foundation's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Bill, Hillary & Chelsea Clinton Foundationat December 31, 2014, and December 31, 2013, and the changes in its net assets and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
Bill, Hillary & Chelsea Clinton Foundation
Consolidated Statements of Financial Position
December 31, 2014 and 2013
The accompanying notes are an integral part of these consolidated financial statements. 2
2014 2013
Assets
Cash and cash equivalents $ 43,152,198 $ 66,012,516
Assets limited as to use 82,969,105 86,645,545
Accounts receivable 3,053,579 2,192,744
Grants receivable 9,880,966 4,566,828
Inventory and prepaid expenses 3,595,928 2,397,481 Contributions receivable, net 112,036,985 61,164,276
Investments 75,661,523 16,194,745
Programmatic and other investments 1,203,347 2,174,513 Property and equipment, net of accumulated depreciation 107,951,664 110,206,478
Total assets $ 439,505,295 $ 351,555,126
Liabilities and Net Assets
Liabilities
Accounts payable and accrued expenses $ 13,668,039 $ 14,298,984
Deferred revenue 53,878,588 53,663,185
Long-term debt - 74,985
Total liabilities 67,546,627 68,037,154
Net assets
Unrestricted 51,301,683 54,555,630
Unrestricted, invested in fixed assets 107,721,020 110,206,478
Total unrestricted 159,022,703 164,762,108
Temporarily restricted 62,242,560 59,742,016
Permanently restricted 150,693,405 59,013,848
Total net assets 371,958,668 283,517,972
439,505,295
Bill, Hillary & Chelsea Clinton Foundation
Consolidated Statements of Activities
Years Ended December 31, 2014 and 2013
The accompanying notes are an integral part of these consolidated financial statements. 3
Temporarily Permanently Temporarily Permanently
Unrestricted Restricted Restricted Total Unrestricted Restricted Restricted Total
Revenues, gains and other support
Contributions $ 24,313,685 $ 101,339,712 $ 92,179,557 $ 217,832,954 $ 48,758,632 $ 88,586,623 $ 58,763,848 $ 196,109,103
Grants 113,957,283 - - 113,957,283 92,923,660 - - 92,923,660
Investment return 13,175 187,167 - 200,342 30,688 688,572 - 719,260
Presidential center 3,579,397 - - 3,579,397 2,814,980 - - 2,814,980
Other 2,415,750 - - 2,415,750 2,122,182 51,973 - 2,174,155
Net assets released from restrictions 98,203,003 (98,203,003) - - 84,240,875 (84,240,875) - -Total revenue, gains and other 242,482,293 3,323,876 92,179,557 337,985,726 230,891,017 5,086,293 58,763,848 294,741,158
Expenses and losses
Program services 217,707,941 217,707,941 196,633,380 - - 196,633,380
Management and general 21,388,327 21,388,327 15,633,562 - - 15,633,562
Fund raising 9,125,430 9,125,430 10,129,160 - - 10,129,160
Provision for uncollectible pledges - 823,332 500,000 1,323,332 - 225,000 - 225,000 Total expenses and losses 248,221,698 823,332 500,000 249,545,030 222,396,102 225,000 - 222,621,102 Change in net assets (5,739,405) 2,500,544 91,679,557 88,440,696 8,494,915 4,861,293 58,763,848 72,120,056
Net assets
Beginning of year 164,762,108 59,742,016 59,013,848 283,517,972 156,267,193 54,880,723 250,000 211,397,916 End of year $ 159,022,703 $ 62,242,560 $ 150,693,405 $ 371,958,668 $ 164,762,108 $ 59,742,016 $ 59,013,848 $ 283,517,972
Bill, Hillary & Chelsea Clinton Foundation
Consolidated Statements of Cash Flows
Years Ended December 31, 2014 and 2013
The accompanying notes are an integral part of these consolidated financial statements. 4
2014 2013
Operating activities
Change in net assets $ 88,440,696 $ 72,120,056 Items not requiring (providing) operating activities cash flows
Depreciation 5,689,549 4,963,682
Gain on sales of property and equipment (7,653) (34,260) Provision for bad debts 1,323,332 225,000 Net unrealized programmatic and other investment loss 1,050,608 293,351 Contributions to endowment (40,998,464) (14,316,723) Changes in
Assets limited as to use 3,676,440 (68,538,568) Accounts receivable (860,835) (1,171,287)
Grants receivable (5,314,138) (3,138,777)
Contributions receivable (52,196,041) (48,963,817) Inventory and prepaid expenses (1,198,446) 148,279 Accounts payable and accrued expenses (630,946) 6,622,802 Deferred grant revenue 215,403 16,799,953 Net cash provided by (used in) operating activities (810,495) (34,990,309)
Investing activities
Purchase of property and equipment (3,447,271) (5,161,098) Proceeds from sales of property and equipment 20,189 45,650 Purchases of securities and investments (61,199,451) (15,543,188) Sales of securities and investments 1,653,231 390,867
Net cash used in investing activities (62,973,302) (20,267,769)
Financing activities
Payment of long-term debt (74,985)
-Contributions to endowment 40,998,464 14,316,723 Net cash provided by financing activities 40,923,479 14,316,723 Decrease in cash and cash equivalents (22,860,318) (40,941,355)
Cash and cash equivalents
Beginning of year 66,012,516 106,953,871
End of year $ 43,152,198 $ 66,012,516
Bill, Hillary & Chelsea Clinton Foundation
Notes to Consolidated Financial Statements
December 31, 2014 and 2013
5
1. Nature of Operations and Summary of Significant Accounting Policies Nature of Operations
The Clinton Foundation works with businesses, governments, nongovernmental organizations, and individuals to improve global health and wellness, increase opportunity for girls and women, reduce childhood obesity, create economic opportunity and growth, and help communities address the effects of climate change by implementing programs, facilitating opportunities and forming creative partnerships. To accomplish its goals through measurable results, the Clinton Foundation has established separate initiatives, with distinct approaches and missions. Each initiative reflects the Clinton Foundation’s vision and overall goals.
The initiatives are as follows:
The Alliance for a Healthier Generation (Alliance), an affiliated entity founded by the Clinton Foundation and the American Heart Association, works with schools, companies, community organizations, health care professionals, and families to build healthier environments for millions of children. In 2014, the Alliance enrolled more than 6,000 schools in its Healthy Schools Program, helping reach 3.4 million students. By the end of 2014, the Alliance’s Healthy Schools Program was supporting more than 16 million students by improving physical education, health education, child nutrition, and staff wellness policies and programs in more than 27,000 schools.
The Clinton Climate Initiative (CCI) collaborates with governments and partners to increase the resiliency of communities facing climate change by creating and implementing replicable and sustainable models that foster cross-sector collaborations. CCI’s approach addresses major sources of greenhouse gas emissions and the people, policies, and practices that impact them, while also saving money for individuals and governments and growing
economies. In 2014, through its building retrofit and energy efficiency programs, CCI helped reduce greenhouse gas emissions in the US by 33,500 tons. By the end of 2014, the Home Energy and Affordability Loan (HEAL) program had completed more than 650 retrofits saving approximately $625,000.
The Clinton Development Initiative (CDI) develops and operates agribusiness projects that empower smallholder farmers to increase their economic potential. In Malawi, Tanzania, and Rwanda, CDI integrates commercial farms with outreach to smallholder farmers to increase access and allow them to participate equitably in local markets. CDI’s model puts farmers first by providing them training, as well as increasing their access to inputs, to improve their crop yields and increase their incomes. In 2014, CDI’s Anchor Farm Project in Tanzania and Malawi worked with more than 36,000 smallholder farmers, providing climate-smart agronomic training and access to markets and services for maize, soya, and sunflower production.
The Clinton Foundation has been actively engaged in Haiti since 2009, focusing on economic diversification, private sector investment, and job creation in order to create long-term, sustainable economic development. Since 2010, the Clinton Foundation has raised a total of more than $30 million for Haiti, including relief funds as well as funds focused on sustainable development, education, and capacity building programs. The Clinton Foundation continues to concentrate on creating sustainable economic growth in sectors including energy, tourism,
Bill, Hillary & Chelsea Clinton Foundation
Notes to Consolidated Financial Statements
December 31, 2014 and 2013
6
agriculture, environment, and artisans. In 2014, the Clinton Foundation facilitated visits of more than 30 international investors, while supporting the growth of 10 entrepreneurial businesses across Haiti.
The Clinton Giustra Enterprise Partnership (CGEP) is pioneering an innovative approach to poverty alleviation. CGEP creates new enterprises to generate both social impact and financial returns by addressing existing market gaps in developing countries’ supply or distribution chains. CGEP provides underserved communities access to markets, jobs, and training by incorporating individuals into one of three models – Distribution Enterprises, Supply Chain Enterprises, and Training Center Enterprises. In 2014, CGEP created a peanut supply chain enterprise in Haiti and a distribution enterprise in Peru, for a total portfolio of six social enterprises. CGEP also began working with more than 500 farmers across Latin America, registered more than 1,500 students in its training center enterprise in Colombia, and recruited and trained more than 200 female entrepreneurs in Peru and Haiti. CGEP successful pilot programs are incorporated to form for profit legal enterprise entities in which the Clinton Foundation typically holds a significant ownership position. Included in the consolidated financial statements are the following entities carrying out the work of CGEP: Acceso Fund, LLC; Acceso Worldwide Fund, Inc.; Haiti Development Fund, LLC and Acceso Peanut Enterprise Corporation, S.A.
The Clinton Global Initiative’s (CGI) mission is to inspire, connect, and empower everyone to forge solutions to the world’s most pressing challenges. CGI convenes leaders from the private sector, public sector, and civil society to drive action through its unique model. Rather than directly implementing projects, CGI helps its members turn ideas into action through impactful and measurable Commitments to Action within nine tracks, each representing a topical global challenge or strategic approach. To support the development of commitments year-round, CGI facilitates conversations, provides opportunities to identify partners, and communicates the results of the work. In 2014 alone, 319 Commitments to Action were made by CGI members and are expected to have a positive impact on the lives of more than 4.9 million people. Clinton Global Initiative operated as a separate entity from 2009 through 2012. In 2013 CGI was merged with Clinton Foundation and now operates as a program within the Clinton Foundation.
The Clinton Health Access Initiative (CHAI) works to address the HIV/AIDS crisis in the developing world and strengthen health systems there. Taking its lead from governments and working with partners, the Clinton Health Access Initiative has improved markets for medicines and diagnostics, lowered the costs of treatment, and expanded access to life-saving
technologies, creating a sustainable model that can be owned and maintained by governments. The Clinton Health Access Initiative has expanded their initial model to increase access to high-quality treatment for malaria, accelerate the rollout of new vaccines, and lower infant mortality. In January 2010, CHAI became a separate nonprofit organization and continues to operate as a separate legal entity.
The Clinton Health Matters Initiative (CHMI) works to improve the health and well-being of people across the U.S. by activating individuals, communities, and organizations to make meaningful contributions to the health of others. By implementing evidence-based systems, and investment strategies, CHMI aims to ultimately reduce the prevalence of preventable
Bill, Hillary & Chelsea Clinton Foundation
Notes to Consolidated Financial Statements
December 31, 2014 and 2013
7
diseases, close health inequity and disparity gaps, and reduce health care costs associated with preventable diseases. In 2014, CHMI generated more than 45 formalized strategic partnerships with national and local entities, which collectively reflected investments and projects that will reach more than 50 million people across the U.S.
The William J. Clinton Presidential Center and Park is a world-class educational and cultural venue offering a variety of special events, exhibitions, educational programs, and lectures throughout the year. By the end of 2014, the Center had welcomed more than 3.3 million visitors from around the world since opening in 2004. Most importantly, the Center is a reflection of the work – past, present, and future – of the 42nd President of the United States. In 2014, the Choctaw Building at the Center was recognized as the oldest LEED-certified building in Arkansas, and among the oldest of all LEED-certified buildings in the US. In addition during 2014 the Center also welcomed the artwork of renowned American artist Dale Chihuly, and celebrated its 10-year anniversary.
Too Small to Fail aims to help parents and communities take meaningful actions to improve the health and well-being of children ages zero to five, preparing them for success in the 21st century. Working with partners across the country, Too Small to Fail, a collaboration between the Clinton Foundation and Next Generation, is building a public action campaign focused on closing this word gap to help ensure that all children start school ready to learn. In 2014, Too Small to Fail partnered with Univision, the leading media company serving Hispanic America, to launch “Pequeños y Valiosos” (“Young and Valuable”), a multiplatform campaign to reach Hispanic families.
No Ceilings: The Full Participation Project is an initiative to advance the full participation of girls and women around the world. No Ceilings brings together global partners to build an evidence-based case for full participation and accelerated progress for girls and women. In 2014, No Ceilings, in collaboration with the Center on Universal Education at the Brookings Institution, announced a $600 million partnership bringing together 30 cross-sector partners to help 14 million girls receive a safe and quality secondary education over the next five years.
William J. Clinton Insamlingsstiftelse (Clinton Foundation Sweden) works on implementing long-term solutions focused on climate change, improving health systems in the developing world, strengthening economic development around the world and fighting childhood obesity. Clinton Foundation Sweden aims to develop or implement, independently or together with others and with joint resources, long-term solutions both locally and in all parts of the world. Clinton Foundation Sweden is a separate legal non-profit Swedish entity.
Principles of Consolidation
The accompanying consolidated financial statements of the Foundation incorporate the accounts of the Clinton Foundation, including the accounts of all program operating offices of the Foundation. Additionally, the consolidated financial statements include the net assets and activities of the entities over which the Foundation maintains an economic interest in or financial control over including; the William J. Clinton Insamlingsstiftelse, Acceso Worldwide Fund, Acceso Peanut Enterprise Corporation, S.A. and CHAI.
Bill, Hillary & Chelsea Clinton Foundation
Notes to Consolidated Financial Statements
December 31, 2014 and 2013
8 Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash Equivalents
The Clinton Foundation considers all liquid investments with original maturities of three months or less to be cash equivalents. At December 31, 2014 and 2013, cash equivalents consisted primarily of money market accounts with brokers.
At December 31, 2014, the Clinton Foundation’s cash and assets limited as to use accounts exceeded federally insured limits by approximately $187 million.
Assets Limited as to Use
Clinton Foundation assets limited as to use include funds designated by contribution or grant agreements to be used for a specific limited program or purpose. Assets limited as to use held by CHAI are limited under its arrangement with UNITAID, an international organization affiliated with the World Health Organization, which works to leverage price reductions for diagnostics and medicines to better treat AIDS, malaria and tuberculosis in the developing world. The assets relate to the UNITAID arrangement and may be used only for the purchase of pediatric and second-line drugs and related commodities and diagnostics for UNITAID-sponsored projects.
Investments and Investment Return
Investments in equity securities having a readily determinable fair value and in all debt securities are carried at fair value. Investment return includes dividend, interest and other investment
income; realized and unrealized gains and losses on investments carried at fair value; and realized gains and losses on other investments.
Investment return is reflected in the statements of activities as unrestricted, temporarily restricted or permanently restricted based upon the existence and nature of any donor or legally-imposed restrictions.
Receivables
Receivables primarily consist of contributions and grants receivable. The Clinton Foundation receives grant support from foundations, governmental units and private entities funding specific programs or events. Since the financial statements of the Clinton Foundation are prepared on the accrual basis, all earned portions of the grants not yet received as of December 31, 2014 and 2013, have been recorded as receivables.
Contributions receivable are stated at the amount pledged by donors net of net present value discounts. The Clinton Foundation provides an allowance for doubtful pledges receivable, which is based upon a review of outstanding receivables, historical collection information and existing economic conditions. Delinquent pledges receivable are written off based on the specific circumstances of the donor making the pledge.
Bill, Hillary & Chelsea Clinton Foundation
Notes to Consolidated Financial Statements
December 31, 2014 and 2013
9
Accounts receivable are comprised primarily of program related billings due, general deposits, travel advances and various deposits for leased facilities.
Property and Equipment
Property and equipment are stated at cost less accumulated depreciation. Depreciation is charged to expense primarily by the straight-line method.
The estimated useful lives for each major depreciable classification of property and equipment are as follows:
Building and fixtures 15–40 years
Furniture and equipment 3–10 years
Net Assets
The Clinton Foundation prepares its consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP). Net assets, revenues and releases from restriction are classified based on the existence or absence of donor-imposed restrictions. Accordingly, the net assets of the Clinton Foundation and the changes therein are classified and reported in three categories of net assets:
Unrestricted net assets are those that are not subject to donor-imposed restrictions, including the net investment in fixed assets, unrestricted gifts and unrestricted current funds.
Temporarily restricted net assets are those whose use by the Clinton Foundation is subject to donor imposed stipulations that will be satisfied either by actions of the Foundation, the passage of time or both. In addition net assets of consolidated investment entities are treated as temporarily restricted as to purpose.
Permanently restricted net assets have been restricted by donors to be maintained by the Clinton Foundation either in perpetuity or until released by specific action by the Foundation's Board in accordance with applicable law.
Contributions
Gifts of cash and other assets received without donor stipulations are reported as unrestricted revenue and net assets. Gifts received with a donor stipulation that limits their use are reported as temporarily or permanently restricted revenue and net assets. When a donor-stipulated time restriction ends or purpose restriction is accomplished, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. Gifts that are originally restricted by the donor and for which the restriction is met in the same time period are recorded as temporarily restricted and then released from restriction.
Gifts of land, buildings, equipment and other long-lived assets are reported as unrestricted revenue and net assets unless explicit donor stipulations specify how such assets must be used, in which case the gifts are reported as temporarily or permanently restricted revenue and net assets. Absent explicit donor stipulations for the time long-lived assets must be held; expirations of
Bill, Hillary & Chelsea Clinton Foundation
Notes to Consolidated Financial Statements
December 31, 2014 and 2013
10
restrictions resulting in reclassification of temporarily restricted net assets to unrestricted net assets are reported when the long-lived assets are placed in service.
Unconditional gifts expected to be collected within one year are reported at their net realizable value. Amounts expected to be collected in future years are recorded at the present value of estimated future cash flows. The discounts on those pledges are computed using an interest rate for the year in which the promise was received and considers market and credit risk as applicable. Subsequent years’ accretion of the discount is included in contribution revenue.
Conditional gifts depend on the occurrence of a specified future and uncertain event to bind the potential donor and are recognized as assets and revenue when the conditions are substantially met and the gift becomes unconditional. No conditional gifts were recorded, received or pledged in either 2014 or 2013.
Collections
The collections maintained at the William J. Clinton Presidential Library and Museum are the property of the National Archives, and, as such, these collections are not included on the
statements of financial position of the Clinton Foundation. Furthermore, the Clinton Foundation is not responsible for the maintenance or preservation of items in the collections.
In-kind Contributions
In addition to receiving cash contributions, the Clinton Foundation receives in-kind contributions from various donors. It is the policy of the Clinton Foundation to record the estimated fair value of certain in-kind donations as an expense in its financial statements and similarly increase
contribution revenue by a like amount. For the years ended December 31, 2014 and 2013, $2,236,108 and $1,721,837, respectively, were received in in-kind contributions.
Grants
Grant support is received from foundations, governmental units and private entities funding specific programs or events. Support funded by government grants is recognized as exchange
transactions as the Clinton Foundation performs the contracted services or incurs outlays eligible for reimbursement under the grant agreements. Grant activities and outlays are subject to audit and acceptance by the granting agency, and, as a result of such audit, adjustments could be required.
Other Income
Other income includes net revenues attributable to program specific transactions, sublease rental income, gains and losses on sale of fixed assets, gains on programmatic investments accounted for under the equity method and proceeds from speeches given by members of the Clinton family, based on contractual agreements between the Clinton Foundation and the paying organization. Income Taxes
The Clinton Foundation is exempt from income taxes under Section 501 of the Internal Revenue Code and a similar provision of state law. However, the Clinton Foundation is subject to federal income tax on any unrelated business taxable income. There is no tax liability due to unrelated business income. Therefore, no provision for income taxes on unrelated business income has been included in the consolidated financial statements. The consolidated for profit entities, Acceso
Bill, Hillary & Chelsea Clinton Foundation
Notes to Consolidated Financial Statements
December 31, 2014 and 2013
11
Worldwide Fund and Acceso Peanut enterprise Corporation, S.A., both have net losses. It is difficult to estimate whether the tax benefit resulting from these losses will be utilized within the prescribed period as defined by pertinent tax law. Any such benefit will be recorded in the future proportionally to the tax losses utilized and is immaterial to the consolidated statements.
Management has analyzed tax positions taken by the consolidated entities and has concluded that, as of December 31, 2014, there are no uncertain tax positions taken or expected to be taken that would require recognition of a liability or disclosure in the consolidated financial statements. Functional Allocation of Expenses
The costs of supporting the various programs and other activities have been summarized on a functional basis in the statements of activities. Certain costs have been allocated among the program services, management and general and fund-raising categories based on time and effort measurements and other methods.
Deferred Revenue
Deferred revenue includes granted and contributed funds received in advance for delivery of program services. These amounts are recognized as revenue when earned based on the underlying agreement. Deferred revenue also includes amounts unspent under the UNITAID agreement. CHAI recognizes contribution revenue when underlying conditions are met and costs are incurred.
Revisions to 2013 Financial Statements
The 2013 consolidated financial statements presented herein have been revised to correct the accounting to now consolidate a controlled entity historically reported on the equity basis of accounting. The Foundation assessed the materiality of the errors and concluded that they were not material to any of its previously issued annual financial statements. The following summarizes the changes in the Statement of Financial Position, Statement of Activities and Statement of Cash Flows as of and for the year ended December 31, 2013:
As Revised
As Originally Reported Statement of Financial Position
Cash and cash equivalents $ 66,012,516 $ 65,647,516 Beneficial interest in net assets of related entity 365,000
Statement of Activities
Contributions (Temporarily Restricted) 88,586,623 91,301,968 Contributions - Total 196,109,103 198,824,448 Change in interest in net assets of related entities (Temporarily Restricted) - (2,715,345) Change in interest in net assets of related entities - Total - (2,715,345)
Statement of Cash Flow
Operating activities
Change in beneficial interest in net assets of related entity - 2,715,345 Net cash used in operating activities (34,990,309) (32,274,964) Decrease in cash and cash equivalents (40,941,355) (38,226,010) Beginning of year - Cash and cash equivalents 106,953,871 103,873,526 End of year - Cash and cash equivalents 66,012,516 65,647,516
Bill, Hillary & Chelsea Clinton Foundation
Notes to Consolidated Financial Statements
December 31, 2014 and 2013
12 Subsequent Events
Subsequent events have been evaluated through November 16, 2015, which is the date the financial statements were available to be issued.
2. Assets Limited as to Use
Assets limited as to use represent the cash available on hand for the UNITAID Commodities Program and cash on hand restricted to expenditures for specific Clinton Foundation programs at December 31:
2014 2013
Assets limited as to use $ 82,969,105 $ 86,645,545
3. Investments and Investment Return
Investments at December 31 consisted of the following:
2014 2013
Certificates of deposit $ - $ 1,545,585 Endowment funds (cash and cash equivalents, mutual and money market funds) 55,661,416 14,649,160
Operating investments 20,000,107
-75,661,523
$ $ 16,194,745
Operating investments represent unrestricted funds intended to be invested long term by Clinton Foundation in order to maximize investment earnings.
Composition of the investment return reported in the statement of activities is as follows:
2014 2013
Interest and dividend income $ 95,658 $ 166,956 Unrealized and realized net gains on investments 104,684 552,304
200,342
Bill, Hillary & Chelsea Clinton Foundation
Notes to Consolidated Financial Statements
December 31, 2014 and 2013
13 4. Programmatic and Other Investments
At December 31 2014 and 2013 all programmatic investments are associated with the mission of Clinton Giustra Enterprise Partnership (CGEP) initiative and comprised of investments in:
2014 2013
Acceso Fund, LLC $ 1,068,564 $ 1,996,505 Haiti Development Fund, LLC 130,557 116,885 Due from investment entities 4,226 61,123
1,203,347
$ $ 2,174,513
The primary purpose of the programmatic investments is to further the tax exempt objectives of the Clinton Foundation and not focus on production of income or the appreciation of the asset. Like grants, these financial investments have as their primary purpose the achievement of the Clinton Foundation’s programmatic mission. These investments, which represent ownership interests in other organizations, are accounted for using the equity method of accounting, and are not subject to the fair value measurement requirements in ASC 958-320 due to these investments not meeting the definition of an equity security with readily determinable fair value.
The net loss on programmatic investments accounted for by the equity method for 2014 and 2013 was $971,166 and $524,996, respectively, as recorded in program services
5. Contributions and Grants Receivable
All contributions receivable, with the exception of Clinton Foundation endowment contributions receivable, are reported as a component of temporarily restricted net assets and consisted of the following at December 31:
2014 2013
Due within one year $ 56,237,694 $ 21,206,433 Due in one to five years 55,221,139 31,010,787 Due in more than five years 6,475,000 15,200,000 117,933,833 67,417,220 Less:
Allowance for uncollectible contributions 2,682,514 3,891,579 Unamortized discount 3,214,334 2,361,365
112,036,985
$ $ 61,164,276
Clinton Foundation endowment net contributions receivable of $95,130,549 and $$44,447,125 at December 31, 2014 and 2013, respectively, are classified as permanently restricted net assets.
Bill, Hillary & Chelsea Clinton Foundation
Notes to Consolidated Financial Statements
December 31, 2014 and 2013
14
Clinton Foundation and CHAI receive grant support through periodic claims filed with respective funding sources, not to exceed a limit specified in the funding agreement. Advances from grantors were approximately $53,878,588 and $53,663,185 at December 31, 2014 and 2013, respectively, and are reported as deferred revenue on the consolidated statements of financial position. 6. Property and Equipment
Property and equipment at December 31 consist of the following:
2014 2013
Land $ 1,300,874 $ 1,300,874
Furniture and equipment 12,225,573 9,302,546 Buildings and fixtures 136,802,520 136,353,324 150,328,967 146,956,744 Less: Accumulated depreciation 42,377,303 36,750,266
107,951,664
$ $ 110,206,478
7. Net Assets
Temporarily Restricted Net Assets
Temporarily restricted net assets on December 31, 2014 and 2013, were available for the following purposes:
2014 2013
Time restricted pledges receivable $ 11,671,193 $ 2,603,521 Haiti relief and recovery 1,531,656 1,526,308
CHAI initiatives 36,621,243 36,135,388
Foundation initiatives 12,418,468 19,476,799
62,242,560
$ $ 59,742,016
Time restricted pledges receivable represent gifts whose only restriction is the passage of time. Permanently Restricted Net Assets
Permanently restricted net assets at December 31, 2014 and 2013 were restricted to:
2014 2013
Clinton Foundation Endowment Fund $ 55,312,855 $ 14,316,723 Clinton Foundation Endowment contributions receivable, net 95,130,549 44,447,125 Speaker's Endowment Fund 250,000 250,000
150,693,405
Bill, Hillary & Chelsea Clinton Foundation
Notes to Consolidated Financial Statements
December 31, 2014 and 2013
15
The Clinton Foundation endowment fund is comprised of permanently restricted gifts received by the Foundation. The income of the endowment fund is unrestricted as to purpose.
Net Assets Released From Restrictions
Net assets were released from donor restrictions by incurring expenses satisfying the restricted purposes, by the expiration of a time restriction or by occurrence of other events specified by donors.
2014 2013
Purpose restrictions accomplished
CHAI initiatives $ 48,120,133 $ 44,423,217 Haiti relief and recovery 3,232,193 1,133,224 Foundation initiatives 35,825,479 29,929,603 87,177,805 75,486,044
Time restrictions expired
Collection of pledges 11,025,198 8,754,831 98,203,003
$ $ 84,240,875
8. Endowment
The Clinton Foundation’s Endowment consists of funds established to support the Foundation’s mission to create partnerships of great purpose to improve global health and wellness, increase opportunity for women and girls, reduce childhood obesity, create economic opportunity and growth, and help communities address the effects of climate change. In furtherance of its
mission, the overall goal of the Foundation’s Endowment is to provide a stable source of financial support and liquidity for the mission of the Foundation. The Endowment is comprised of donor-restricted endowment funds. As required by accounting principles generally accepted in the United States of America (GAAP), net assets associated with endowment funds are classified and reported based on the existence or absence of donor-imposed restrictions.
Applicable law requires that all endowment funds be classified as permanently restricted. In the Foundation's Endowment, these comprise two types of funds: (1) funds that have donor
restrictions requiring that they be maintained in perpetuity; and (2) funds that do not have donor restrictions as to the term for which such funds must be maintained prior to their appropriation for spending and which can be appropriated for spending by specific action of the Foundation's Board. In the latter instance, where there is no such explicit donor restriction within the gift instrument, the Foundation has determined that it will prudentially classify the original value of a gift and any subsequent gifts made under the same instrument as permanently restricted given the totality of the circumstances of the gift. Accumulated earnings on the Endowment are classified as temporarily restricted net assets until those amounts are appropriated for expenditure by the Foundation. The Foundation makes all determinations to appropriate or
Bill, Hillary & Chelsea Clinton Foundation
Notes to Consolidated Financial Statements
December 31, 2014 and 2013
16
accumulate donor-restricted endowment funds in a manner consistent with the standard of prudence prescribed by applicable law, including UPMIFA.
The composition of net assets by type of endowment fund at December 31, 2014 and 2013 was:
Temporarily Permanently
Unrestricted Restricted Restricted Total
Donor-restricted endowment funds - 98,560 150,693,405 150,791,965 Total endowment funds $ - $ 98,560 $ 150,693,405 $ 150,791,965
2014
Temporarily Permanently
Unrestricted Restricted Restricted Total
Donor-restricted endowment funds $ - $ 82,437 $ 59,013,848 $ 59,096,285 Total endowment funds $ - $ 82,437 $ 59,013,848 $ 59,096,285
2013
Changes in endowment net assets for the years ended December 31, 2014 and 2013 were:
Temporarily Permanently
Unrestricted Restricted Restricted Total
Endowment net assets, beginning of year $ - $ 82,437 $ 59,013,848 $ 59,096,285
Net appreciation (depreciation) - 16,123 16,123
Write off of uncollectible pledges (500,000) (500,000)
Contributions - 0 92,179,557 92,179,557
Total endowment funds $ - $ 98,560 $ 150,693,405 $ 150,791,965 2014
Temporarily Permanently
Unrestricted Restricted Restricted Total
Endowment net assets, beginning of year $ - $ 17,491 $ 250,000 $ 267,491
Net appreciation (depreciation) - 64,946 - 64,946
Contributions - 58,763,848 58,763,848
Total endowment funds $ - $ 82,437 $ 59,013,848 $ 59,096,285 2013
Net endowment contributions receivable as of December 31, 2014 and 2013 were $95,130,549 and $44,447,125, respectively.
Bill, Hillary & Chelsea Clinton Foundation
Notes to Consolidated Financial Statements
December 31, 2014 and 2013
17
From time to time, the fair value of assets associated with individual donor-restricted endowment funds may fall below the value of the initial and subsequent donor gift amounts. In accordance with GAAP, when the value of endowment funds fall below initial and subsequent gift amounts, such deficiencies are classified as a reduction of unrestricted net assets. As of December 31, 2014 and December 31, 2013 no such deficiencies exist.
The Clinton Foundation Endowment was created during the 2013 fiscal year. During 2014, the Foundation Board approved candidates for the Investment Committee which is empowered to approve and adopt investment policies and procedures to ensure that endowment funds and their related returns are spent in accordance with UPMIFA and donor’s intent and maintain the
appropriate amount of risk and return for the Foundation’s purposes. For the long-term, the primary investment objective for the Endowment is to earn a total return (net of all investment program fees), within a prudent level of risk, which is sufficient to maintain in real terms the purchasing power of the Endowment, support operating expenses and payout requirements and provide moderate capital appreciation after accounting for such distributions and expenses. The risk tolerance of the Foundation is moderate. Moderate fluctuations in market value can be tolerated over time, and stability of the overall corpus is valued for predictability and consistency of payouts over time. This tolerance, as dictated by market conditions and organizational
circumstances, may be adjusted over time. The Foundation’s investment time horizon is long term. The Foundation, in consultation with the Investment Committee, has delegated to an Investment Advisor the day-to-day implementation of the investment program as set forth in the Investment Policy Statement. The specific roles and responsibilities of the Investment Advisor are governed by a written investment management agreement, signed and agreed to by the Foundation and the Investment Advisor.
The following is a summary of the asset allocation guidelines and performance benchmarks adopted by the Foundation:
Benchmark
Near-Term Long-Term
Reserve
Reserve Fixed Income 10.00% 10.00% Barclays Intermediate Aggregate Index Balanced Reserves 2.50% 0.00%
Subtotal 12.50% 10.00%
Hedged
Strategic Fixed Income 9.00% 7.00% HFRI Strategic Fixed Income Peer Group Diversified Strategies 10.50% 9.00% HFRI Fund of Funds Diversified Index Hedged Equity 10.50% 9.00% HRFI Equity (Total) Hedge Index
Subtotal 30.00% 25.00%
Directional
Benchmark Equity 25.00% 25.00% MSCI All Country World Index Select Equity 27.50% 25.00% MSCI All Country World IMI Index
Private Investments 5.00% 15.00%
State Street Private Equity Index: US Private Equity Funds Median Return
Subtotal 57.50% 65.00% Total 100.00% 100.00%
Bill, Hillary & Chelsea Clinton Foundation
Notes to Consolidated Financial Statements
December 31, 2014 and 2013
18
The Endowment uses two different spending policies, one for the near-term and one for the long-term, to be adopted once the Foundation reaches a threshold set at the Board’s discretion. The near-term spending policy dictates that no spending will occur from the Endowment for the foreseeable future as the corpus is established and grows meaningfully from inflows. The long-term spending policy specifies that annual spending will be based on 3-5% of the trailing 12 quarter average of the Endowment or similar formula. By using the trailing 12 quarter average the
Foundation aims to smooth the spending amount and avoid large swings, providing a consistent and predictable level of financial support for the Foundation over time. The Foundation has not used or invested any of the endowment funds (or any net appreciation from these funds classified in temporarily restricted net assets) during 2014 as the Investment Committee, Investment Policy and Spending Policy were approved late in the year. For this reason, all endowment funds received and held during 2014 are held in cash and cash equivalents, money market funds and mutual funds.
9. Functional Expenses
Expenses incurred by the Clinton Foundation, excluding provision for uncollectible pledges, classified by functional categories for the years ended December 31, 2014 and 2013, were as follows:
Program Management/ Fund
Services General Raising Total
Salaries and benefits $ 79,937,654 $ 12,835,407 $ 3,114,078 $ 95,887,139 Direct program expenditures 33,689,239 - 3,360 33,692,599 Professional and consulting 13,829,202 1,390,623 2,030,051 17,249,876 Conferences and events 12,687,287 128,611 1,384,249 14,200,147 UNITAID commodities expense 14,196,240 - - 14,196,240 Procurement and shipping 2,549,578 - - 2,549,578 Travel 18,475,724 951,325 1,359,480 20,786,529 Telecommunications 2,278,659 461,714 29,591 2,769,964 Meetings and trainings 13,361,801 138,621 19,402 13,519,824 Bank and other fees 625,735 602,853 176,969 1,405,557 Occupancy costs 5,593,595 1,587,554 116,437 7,297,586 Office expenses 6,192,912 1,464,445 130,779 7,788,136 Capital charges 5,664,204 8,535 - 5,672,739 Depreciation 5,109,564 333,820 32,432 5,475,816 Other 3,516,547 1,484,819 728,602 5,729,968
Totals, year ended
December 31, 2014 $ 217,707,941 $ 21,388,327 $ 9,125,430 $ 248,221,698
Bill, Hillary & Chelsea Clinton Foundation
Notes to Consolidated Financial Statements
December 31, 2014 and 2013
19
Program Management/ Fund
Services General Raising Total
Salaries and benefits $ 65,775,050 $ 9,592,297 $ 3,616,323 $ 78,983,670 Direct program expenditures 29,389,026 - 46,017 29,435,043 Professional and consulting 13,697,674 904,301 2,096,221 16,698,196 Conferences and events 9,721,984 28,879 1,444,691 11,195,554 UNITAID commodities expense 28,647,779 - - 28,647,779 Procurement and shipping 1,668,867 - - 1,668,867 Travel 16,707,454 736,369 1,754,678 19,198,501 Telecommunications 2,214,469 324,036 82,118 2,620,623 Meetings and trainings 7,470,295 86,950 9,971 7,567,216 Bank and other fees 706,900 171,447 272,212 1,150,559 Occupancy costs 4,715,823 842,953 420,114 5,978,890 Office expenses 4,673,655 745,817 234,250 5,653,722
Capital charges 3,962,232 - - 3,962,232
Depreciation 4,318,967 644,715 - 4,963,682
Other 2,963,205 1,555,798 152,565 4,671,568
Totals, year ended
December 31, 2013 $ 196,633,380 $ 15,633,562 $ 10,129,160 $ 222,396,102
2013
10. Program Services Expenses
Program service expenses incurred by the Clinton Foundation classified by initiative for the years ended December 31, 2014 and 2013, were as follows:
Clinton Health Access Initiative $ 143,041,357 66% $ 127,781,347 68% Clinton Global Initiative 23,544,381 11% 23,684,078 9% Clinton Presidential Center 13,501,618 6% 12,288,987 6% Clinton Climate Initiative 8,293,416 4% 8,406,801 8% Clinton Giustra Sustaninable Growth Initiative 7,358,967 3% 5,039,288 3% Clinton Development Initiative 4,482,714 2% 2,575,401 1% Clinton Health Matters Initiative 3,696,323 2% 1,676,729 0% Other Program 13,789,165 6% 15,180,749 5%
217,707,941
$ 100% $ 196,633,380 100%
2014 2013
11. Operating Leases
The Clinton Foundation’s leases which are generally month-to-month operating leases for office space both domestically and internationally, expire at various dates through 2043. Rental expense
Bill, Hillary & Chelsea Clinton Foundation
Notes to Consolidated Financial Statements
December 31, 2014 and 2013
20
for all operating leases was $4,837,425 and $3,931,893 for 2014 and 2013, respectively. There are three standby letters of credit totaling $1,309,625 in support of these leases. There are no amounts outstanding on the letters of credit as of December 31, 2014.
12. Pension Plan
Retirement benefits are offered to the Clinton Foundation employees based on eligibility. These benefits vary and are dependent on employee type and location.
U.S. based staff and U.S. expatriates are eligible to contribute into a 401(k) plan which the Clinton Foundation matches up to 6% of the employee contribution.
Third Country Nationals and Local national retirement plans are available in a select number of countries. The Clinton Foundation also contributes to the national social security fund in many of the countries in which it operates as stipulated by local law.
Pension expense was $3,655,966 and $2,693,133 for 2014 and 2013, respectively.
13. Transactions With the National Archives and Records Administration and Lease With the City of Little Rock, Arkansas
In 2004, the Clinton Foundation entered into a joint use, operating and transfer agreement with the National Archives and Records Administration (NARA) that expires February 29, 2101. Under the agreement, NARA agreed to operate certain areas of the facility known as the William J. Clinton Presidential Library and Museum (the Library) for the purposes of housing, preserving and making available, through historical research, exhibitions, educational programs and other activities, the presidential records and historical materials of President William Jefferson Clinton.
Because the terms of the lease essentially transfer to NARA the right to use portions of the Library for a period in excess of the property’s expected economic life, the cost of construction of those areas operated by NARA, which amounted to approximately $36,000,000, has been excluded from the Clinton Foundation’s statements of financial position.
The land occupied by the Library is owned by the City of Little Rock, Arkansas (the City), but is leased to the Clinton Foundation under a 99-year lease for a nominal annual amount. The Clinton Foundation is responsible for maintaining those areas within 75 feet of the buildings and certain land improvements. Maintenance of the remaining land is the responsibility of the City. Because the lease with the City does not convey exclusive right to the use of this land and because it is to be operated in a manner similar to other City parks, the Clinton Foundation does not recognize the present value of the lease’s fair value within its financial statements.
14. Disclosures About Fair Value of Assets
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value
measurements must maximize the use of observable inputs and minimize the use of unobservable inputs. There is a hierarchy of three levels of inputs that may be used to measure fair value:
Bill, Hillary & Chelsea Clinton Foundation
Notes to Consolidated Financial Statements
December 31, 2014 and 2013
21
Level 1 Quoted prices in active markets for identical assets or liabilities
Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities
Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities
Investments
Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities include money market funds, equity securities and mutual funds. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy. The Clinton Foundation did not have any Level 2 or Level 3 measurements at December 31, 2014 or 2013.
Recurring Measurements
The following table presents the fair value measurements of assets and liabilities in the accompany statements of financial position measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2014 and 2013:
Quoted Prices
in Active Significant
Markets for Other Significant Identical Observable Unobservable
Assets Inputs Inputs
Fair Value (Level 1) (Level 2) (Level 3) December 31, 2014 Investments: Certificates of deposit $ - $ - - -Mutual funds 75,661,523 75,661,523 - -75,661,523 $ $ 75,661,523 $ - $ -December 31, 2013 Investments: Certificates of deposit $ 1,545,585 $ 1,545,585 - -Mutual funds 14,649,160 14,649,160 - -16,194,745 $ $ 16,194,745 $ - $
-Fair Value Measurements Using
The following methods were used to estimate the fair value of all other financial instruments recognized in the accompanying statements of financial position at amounts other than fair value.
Bill, Hillary & Chelsea Clinton Foundation
Notes to Consolidated Financial Statements
December 31, 2014 and 2013
22
Cash and Cash Equivalents and Assets Limited as to Use The carrying amount approximates fair value.
Contributions Receivable
The carrying amount approximates fair value. Long-term Debt
The carrying amount approximates fair value.
The following table presents estimated fair values of the Clinton Foundation’s financial instruments at December 31, 2014 and 2013:
Carrying Fair Carrying Fair
Amount Value Amount Value
Financial assets
Cash and cash equivalents $ 43,152,198 $ 43,152,198 $ 66,012,516 $ 66,012,516 Contributions receivable, net 112,036,985 112,036,985 61,164,276 61,164,276
Financial liabilities
Long-term debt $ - $ - $ 74,985 $ 74,985
2014 2013
15. Related Party
The Clinton Foundation engages in certain charitable activities that are funded by Clinton Giustra Enterprise Partnership (CGEP Canada, formerly CGSGI Canada). CGEP Canada makes grants from time-to-time to the Clinton Foundation to carry out CGEP Canada’s and the Clinton
Foundation’s charitable goals. Neither entity controls the other; however, they share a common board member. During 2014 and 2013, the Clinton Foundation received from CGEP Canada approximately $131,008 and $1,232,458, respectively.
16. Significant Estimates and Concentrations
Accounting principles generally accepted in the United States of America require disclosure of certain significant estimates and current vulnerabilities due to certain concentrations. These matters include the following:
Assets in Foreign Countries
The Clinton Foundation maintains cash balances and equipment in Asia, Africa, the Caribbean, Sweden, Australia, Haiti and South America. At December 31, 2014 and 2013, the Clinton Foundation had approximately $12.8 million and $18.0 million, respectively, deposited in foreign banks and equipment with an acquisition cost of approximately $8 million and $5.5 million, respectively, in foreign countries.
Bill, Hillary & Chelsea Clinton Foundation
Notes to Consolidated Financial Statements
December 31, 2014 and 2013
23 Contributions and Grants
At December 31, 2014, the concentration of earned revenue was as follows:
2014 2013
Government and multilaterals 33 % 33 % Foundations 43 29 Other donors 24 38
100 %
100 %
Contribution and grant revenue recorded in the Statement of Activities totaled $332 million and $292 million for the years ended December 31, 2014 and 2013, respectively.
Litigation
The Clinton Foundation is, from time to time, subject to claims that arise primarily in the ordinary course of its activities. Currently, management is not aware of any such claim or claims that would have a material adverse effect on the Clinton Foundation’s financial position or net assets. Events could occur, however, that would change this estimate materially in the near term.
Form 990 (2014) Page 2 Statement of Program Service Accomplishments
Part III
Check if Schedule O contains a response or note to any line in this Part III
m m m m m m m m m m m m m m m m m m m m m m m m
1 Briefly describe the organization's mission:2 Did the organization undertake any significant program services during the year which were not listed on the
prior Form 990 or 990-EZ?
m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m
Yes No If "Yes," describe these new services on Schedule O.3 Did the organization cease conducting, or make significant changes in how it conducts, any program
services?
m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m
Yes No If "Yes," describe these changes on Schedule O.4 Describe the organization's program service accomplishments for each of its three largest program services, as measured by expenses. Section 501(c)(3) and 501(c)(4) organizations are required to report the amount of grants and allocations to others, the total expenses, and revenue, if any, for each program service reported.
4a (Code: ) (Expenses $ including grants of $ ) (Revenue $ )
4b (Code: ) (Expenses $ including grants of $ ) (Revenue $ )
4c (Code: ) (Expenses $ including grants of $ ) (Revenue $ )
4d Other program services (Describe in Schedule O.)
(Expenses $ including grants of $ ) (Revenue $ )
I
4e Total program service expensesJSA Form 990 (2014)
4E1020 1.000
BILL, HILLARY & CHELSEA CLINTON FOUNDATION 31-1580204
X
ATTACHMENT 1
X
X
23,176,059. 1,600,272.
CLINTON GLOBAL INITIATIVE (SEE SCHEDULE O FOR FURTHER DETAILS)
12,308,704. 14,455. 3,579,397.
CLINTON PRESIDENTIAL CENTER (SEE SCHEDULE O FOR FURTHER DETAILS)
8,293,416. 397,387. 148,358.
CLINTON CLIMATE INITIATIVE (SEE SCHEDULE O FOR FURTHER DETAILS)
28,774,008. 4,748,543. 1,655,358.
72,552,187.
